Saturday, November 30, 2013

Some interesting "Black Friday" Retail and Mobile Stats!!

 Wish you all had a great Thanksgiving break... I have been watching this space for several years, here are a few interesting facts... I am sharing these because I have used this in the past with client conversations and building of business case.

Source of all this : IBM Digital Analytics!

-- Online Sales Set New Record: Thanksgiving Day online sales grew 19.7 percent year-over-year followed by Black Friday, with sales increasing 19 percent over 2012. Average order value for Black Friday was $135.27, up 2.2 percent year-over-year.
-- Top Five Cities for Online Shopping: New York City took the top spot for online sales on Black Friday. Rounding out the top five were Atlanta, Los Angeles, Washington, D.C. and Chicago.
-- Mobile Shopping Soars: Mobile traffic grew to 39.7 percent of all online traffic, an increase of 34 percent over Black Friday 2012. Mobile sales were also strong, reaching 21.8 percent of total online sales, an increase of nearly 43 percent year-over-year.
-- Smartphones Browse, Tablets Buy: Smartphones drove 24.9 percent of all online traffic on Black Friday compared to tablets at 14.2 percent, making it the browsing device of choice. Tablets drove 14.4 percent of all online sales, double that of smartphones, which accounted for 7.2 percent of all online sales. On average, tablet users spent $132.75 per order compared to smartphone users who spent $115.63, a difference of 15 percent.
-- iOS vs. Android: On average, iOS users spent $127.92 per order on Black Friday compared to $105.20 per order for Android users. iOS traffic reached 28.2 percent of all online traffic, compared to 11.4 percent for Android. iOS sales reached 18.1 percent of all online sales, compared to 3.5 percent for Android.
-- Retailers "Push" Promotions to Mobile Shoppers: On average, retailers sent 37 percent more push notifications - the alert messages and popup notifications from apps installed on your mobile device - during the two day period over Thanksgiving Day and Black Friday when compared to daily averages over the past two months. Average daily retail app installations also grew by 23 percent using the same comparison. Retailers sent more notifications on Thanksgiving Day than Black Friday.
-- The Social Influence - Facebook vs. Pinterest: On average, holiday shoppers referred from Pinterest on Black Friday spent 77 percent more per order than shoppers referred from Facebook. Facebook average order value was $52.30 versus Pinterest average order value which was $92.51. However, Facebook referrals converted sales at nearly four times the rate of Pinterest.

Have a great weekend!

:)
Nitin

Friday, November 8, 2013

Cloud, Mobile, MBaaS… How do we make sense of it all.


Folks,

this post will be a long one...

 This week I spend a lot of time on this topic with several clients and I sense that our client have a notion around positioning Mobile application and services in cloud context. I have always believed that for us to success we ought to have an adaptive and multi prong cloud strategy when it comes to mobile. So this week I will attempt to discuss the evolution of mobile-cloud landscape.

I will start with cloud discussion to set the stage. So what is a cloud-computing platform? Is it simply automated provisioning systems coupled with a resource virtualization, where the workload is policy driven, and resources over committed and any resource contention handled by policy driven resolution? As it turns out technologies that provide provisioning, virtualization and policy enforcement form the building blocks of a true cloud computing platform, but not any one technology is a cloud offering in and of it self. The efficiency goals of cloud are not only towards costs savings but also are defined by the business requirement usually driven by external market forces and availability of various enabling technologies.  
Cloud computing as a platform is amalgamation of such enabling technologies. While the concept of cloud computing is not new, efforts such as net (work) computing and various hardware and software virtualization technologies in the past have attempted to address the need for ‘unlimited' resource pool capable of handling varying workloads. Let's explore what this means. A true cloud platform provides an illusion of infinite computing resources available on demand. The notion of on demand infinite computing resources requires a systemic approach that includes sense and response subsystems, with a tie into a system level monitoring subsystems which is front ended by a rich user interface and all tied together by a robust governance sub system. These sub systems can be further classified as a complete and inseparable components of a cloud computing platform. Cloud computing is a new consumption and delivery model nudged by consumer demand and continual growth in internet services. 

Cloud computing exhibits the following 6 key characteristics:
a.       Elastic Environment
b.      Provisioning Automation
c.       Extreme Scalability
d.      Advanced Virtualization
e.       Standards based delivery
f.       Usage based equitable chargeback

The terms described below have evolved to provide a structure and concept consumption around Cloud paradigms:

IaaS – Infrastructure as a Service (Essentially HW + OS + Other Network services)
PaaS – Platform as a Service (IaaS + Platform technologies such as Middleware/Directory services etc)
SaaS – Software as a Service (Bring your Mouse and yes.. your brains.… and provision and configure/consume services)

Now let  us surface the Mobile computing driven trends that may tip the scale in driving the cloud patterns to new heights. But before we discuss these trends and technologies we need to understand drivers responsible for the resurgence in cloud consumption… all driven by Mobile computing and it’s derivatives.

a.    Software and Data Ownership –There is  a complex relationship between the data ownership and software ownership. Clients want to own the data and not the software ( due to licensing costs and maintenance). This leads to interesting conversation around traditional hosting/resource provisioning and ability of an enterprise to just create Mobile application services and provide an integration point to the enterprise.  This model allows the enterprise to control data access and ownership and yet keep up with the modern trends in the industry at relative low costs without extensive capital investments into software ownership. Think of this more like a “Software rental”, a concept that  lends itself to Hoteling or multi-tenancy.

b.     Burden of System Management – With IT systems and managers driving for efficient consolidation  adding another tier of system management to address Mobility can be a daunting task, besides monitoring and analysis of critical business objectives gets the time share. So the notion of provisioning, managing and monitoring system like Mobile device management, MBaaS services ( Mobile Backend as a  service) is preferred to be managed and maintained in cloud.


c.    Continually evolving Mobile Eco-system – Our clients have, in the past, spend time and money to harden the  infrastructure and handle the evolution  in middleware Infrastructure and platforms. There is little or no appetite to deal with a much rapid force of changes with in Mobile Eco system that has direct impact on the existing infrastructure. The assumption here is that the cloud based services will keep up with eco system evolution such as notification systems, MobileOSs, and new and emerging mobile-social integration points ( such as OpenAuth, Social updates and notification and API economy) and enterprise get to use and keep up wit the changes by association. Thought to ponder  upon here is how do Mobile Infrastructure Cloud service provide keep up with this rapid change? What are their challenges?

d.    Ephemeral nature of Mobile Application landscape – As discussed earlier rapid shift in the mobile landscape driven primarily by the MobileOS vendors and Mobile services ( NFC, Payment, Notifications etc), many client hesitate in locking in an on premise platform as many question the ability of these vendor provided platforms to keep up with the changes in marketplace.


e.    Changing mindset around investment and consumerization of Mobile platforms – As our clients are still in process of  defining their ROI expectations and as business evolve to adapt to Mobile way of doing business, there is clear lack of leadership and the idea of disengaging or switching providers not only makes business sense but also addresses the long term capital justification concerns. Mobility in cloud seems a more palatable and economically viable option. Unless there is a  defined business value or a ROI around ownership of mobile platforms, this will be  a “rent vs. buy” discussion.

f.     Social ’ization’ of Mobile APIs – With emergence of Mobile API services offered by the social media eco system, and other vendors like Twillio, Google etc clients have eased into “service virtualization’ concepts and are more comfortable with cloud based models. After all many B2C application rely on this emerging and burgeoning API economy.

Now that we discussed the drivers, I would like to take this discussion in understanding the Technical landscape that surrounds Mobile Cloud discussions. To grasp this concept I’d like to device a  classification system so we can understand the technical landscape.  Broadly speaking there are 3 models of Cloud engagement in Mobile context:

1. Traditional Cloud  - This  goes back to our IaaS,PaaS and SaaS model where our clients are thinking  :
a.  on premise and off premise or even Co-location
b. Provisioning Automation
c. Configuration Automation
e. HA (High availability) and DR ( Disaster Recovery)
f. Consumerization of IT and enterprise resource reuse

Imperatives:
This goes towards our traditional model of cloud based provisioning and consumption  of services. The ROI models are similar to that of previously used Middleware ROI models where “consolidation” and “ time to market” are primary drivers of cost efficiency. This also applies to clients and typically large enterprise clients which is either due to regulation or choice or business decision choice to maintain and control their own infrastructure – on or off premise or CoLo.

Some Terms, concepts to be familiar with:
1.OpenStack
2. CloudStack
3. Chef and Puppet
4. Cloud IDE

Some notable Companies to be aware of:
1.    IBM Smart Cloud
2.    Amazon  Cloud Services
3.    Rackspace
4.    Heroku
5.    Cloud Foundry
6.    Red Hat’s Open Shift
7.    Cloud9 IDE


Inference:
Focus here from a Mobile middleware, infrastructure and components is on provisioning, configuration automation and management of the various Mobile components. Platform ought to have the ability to be developed, deployed, and managed with full automation tooling integration with an ability to monitor all the components that are deployed.


2.  MBaas and API Management  -- I tend to classify these together. There is a  reason for this. MBaaS which is “Mobile  Back end as a Service” is a  emerging model to provide the app developers to interface the back end service such as a storage, data access, services access and other mobile specific services such as Push, social network services and SMS. API Management on the other hand is a mechanism to publish, share and meter the usage of yet another layer of service interface. In the Mobile API economy these go hand in hand. Think of these as not only an integration layer but also a tier to manage Mobile interaction with the enterprise.

Imperatives:
This is becoming increasingly common  concept in mobile parlance. We often use the term Mobile Middleware, and I think the term MBaaS will take prime seat in Enterprise Mobile discussion as  a service integration layer. The primary drivers behind this is the rapid rate of evolution, and crowding of competing and complimenting client technologies in marketplace is driving our clients toward a decision model that separates the client architecture from the server architecture and yet induce mobile specific interoperability. This interoperability relies on not only the understanding of the client technology but also the data structure. JavaScript is not only accessible but also easy to use which contributes to its ubiquitous use in mobile application. This allows for Mobile device to connect and fetch data. This data ( or service) can exists in cloud or on premise. As long the server architecture provides a Mobile friendly interface (JavaScript) and data structure (JSON). Use of JavaScript on server enables an enterprise to exploit and repurpose current web development skills to develop, deploy and manage the mobile middleware or MBaaS. Some notable companies  as LinkedIn, PayPal, Intuit, yahoo and eBay etc, are already validating the use and growth of MBaaS on Node.js. The possibilities are immense ranging from use of Node.js in the heart of the enterprise to the edge and periphery of the enterprise. The model is bound to grow in popularity due to the decoupled model that has a direct cost implication on the development and maintenance of the Mobile application infrastructure.


Inference:
The notion of decoupling the client ( application on the device) and server gaining momentum. This idea of decoupling implies that regardless of client technology ( Android, iOS-Xcode, MS – visual studio or JavaScript framework like jquery, Dojo Mobile, and sencha etc and other framework like HTML5 Cordova and Appcelerator etc) the server side technology should be independent and unaware of client and provide client a Mobile specific middleware services such as a Push, SMS, data and storage integration and access to other enterprise specific APIs.

Some examples and framework to Know are:
Data Binding: Backbone, AngularJS, Node js. Dojo Observable
Routing: dojo/router, Backbone, Node
App Controllers: Backbone, AuraJS
Sync: component/model, AngularJS services, Backbone Sync

Some companies to be aware of:
1.    Rackspace
2.    Strongloop (Loopback)
3.    StackMob
4.    Parse
5.    CloudMine
6.    ScottyApp


3. Emerging Mobile API Economy –These are services that provide services to Mobile application. Services such as sending messages to users, payment processing, track analytics, cloud data storage,  and cloud based governance etc. Some examples include-  Twilio, Google Digital wallets, Stripe, square, Uber, TaskRabbit, AdMob ( Google), box, etc.

Imperatives:
These technologies and services allow application to delegate a task such as a storage , authentication , payments etc and minimize the need for an expensive infrastructure and design work to accomplish the same. These service invocation can be a pay per use model or a “All you can eat” model.  The idea here is  to increase time to market, enhance developer productivity and reduce costs on specialized services with virtually zero cost of maintenance.

Inference:
Gartner predicts the revenue of these application service providers to rise to $25 Billion this year. This is a growing economy and an eco system and we will need to pay attention to this. While this may not fall under traditional sense of Cloud, this is a cloud based service delivery and consumption model.

Some notable Companies to be aware of:
1.    IBM API Management
2.    Mashery
3.    Apigee
4.    Google API
5.    Twilio


Conclusion:
So obviously there is a  lot  to consume and understand  around Cloud and mobility. In conclusion, I would say this - it is absolutely futile the working against these trends, instead we will need to understand where do we play and what is our place in this growing and changing eco system. We need to provide  “Design” thinking  to our clients from a business perspectives and lay the technical foundation needed to absorb the eco system changes and drive the business imperatives. What we need to address from a technical design perspective is the around data – it’s storage and retrieval – surrounded by enterprise quality of services such as security, scalability etc. From a Business perspective we ought to understand the drivers. The obvious business drivers are costs and time to market, but other drivers may include ( but not limited to) availability of skills, lifespan of the mobile initiative, legacy data and processing systems and current mobile and social presence, and so on.  Mobile is a natural extension of cloud, in the evolutionary computing paradigm cloud computing is not only essential for growth of Mobile computing but together they set the stage for the next era.
The question to ponder upon is – what is that next era? and how technology integrates wit the way we live?
  

Reference readings:
1.    StrogLoop – Loopbacl Node.js - http://strongloop.com/strongloop-suite/loopback/
2.    Twilio – commnication voice based API  http://www.twilio.com/
4.    Mashery - http://www.mashery.com/
5.    Apigee - http://apigee.com/about/
6.    Rackspace Cloud Mobile Stack -http://www.rackspace.com/cloud/mobile-stacks/
8.    Forrester MBaaS - http://blogs.forrester.com/michael_facemire/12-04-25-mobile_backend_as_a_service_the_new_lightweight_middleware